Page 22 - Plastics News May 2019

COMPANY NEWS

DowDuPont is splitting into 3 Eastman Chemical fined for

Companies market violation

owDuPont is the biggest chemical conglomerate in 6 EDVHG (DVWPDQ &KHPLFDO ZDV ÀQHG PLOOLRQ
Dthe world. It generated $86 billion in sales in 2018, Uyuan (US$ 3.6 million) by Chinese market regulators
more than any other company on the planet. That’s more for abusing its dominance in the market for a type of
than BASF in Germany (about $74 billion in sales), more DOFRKRO XVHG LQ ODWH[ SDLQWV DFFRUGLQJ WR DQ RIÀFLDO
than privately held Sabic in Saudi Arabia (about $33 statement. China’s competition watchdog SAMR made
billion in chemical sales) and more than Formosa Plastics a penalty decision, adopted by its Shanghai branch
Shanghai Market Regulation Bureau (“SMRB”) on April
29, 2019, right before the International Labor Day
holiday. This decision is addressed to Eastman (China)
Investment Management Co., Ltd. (“Eastman China”),
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Chemical Company, for restricting transactions by
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roughly USD 3.6 million.In 2013 to 2015, Eastman held
a high market share in China for a type of alcohol that
clients heavily depended on, it said. But the company
Group in Taiwan (about $46 billion sales).But bigger has “forced” clients to sign exclusive agreement
isn’t always better. According to reports DowDuPont is which limited their choice of products and prevented
in the process of breaking up into three of the largest RWKHU ÀUPV IURP HQWHULQJ WKH PDUNHW 6XFK SUDFWLFHV
chemical companies in the world. Dow will be dedicated weakened market competition, the regulator said.
to commodity chemical production, DuPont to specialty The investigation formally began in August of 2017 by
chemical production, and Corteva will be dedicated to the Shanghai market supervision authority, with the
agricultural chemicals. Sometimes conglomerates work authorization of the State Administration for Industry
well because business diversity insulates corporations and Commerce. As Eastman Chemical violated the
from the vagaries of the business cycle—one division is
strong, while another struggles. Another argument for
conglomerate structures is cash-based.

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capital spending in another division. Others, however,
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all said and done, the biggest change from these deal
machinations is the combination of the legacy.DuPont
is the specialty products division of DowDuPont and
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company on June 1, following the separation of Dow Inc.
that took place April 1. Also, as part of the separation, clause over the abuse of market dominance, the
Coreteva Agriscience, the agriculture division, will emerge
as its own company. DuPont in Michigan will be the second 6KDQJKDL PDUNHW VXSHUYLVLRQ DXWKRULW\ LVVXHG D ÀQH
of 24.38 million yuan for the violation. incidentally
largest site in the company's global footprint, with more eastman will discuss two breakthrough innovations
than 1,800 employees, said Tim Lacey, DuPont global
business president for performance building solutions and (DVWPDQ 7UǟYDŒ HQJLQHHULQJ ELRSODVWLF DQG &ULVWDO
EV600™ copolyester cellulose-based plastic for opaque
leader of "DuPont North."
and color-tinted packaging.

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